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Financial Assets and Liabilities - Coggle Diagram
Financial Assets and Liabilities
Financial Liabilities
Financial Liability: is any liability that is a contractual obligation:
To deliver cash or another financial asset to another entity
To exchange financial assets or liabilities with an other entity under conditions that are potentially unfavourable.
That will or may be settled in the entity’s own equity instruments.
Examples:
Trade Payables
Debenture loans
Redeemable preference shares
Financial Assets
Financial Assets: is any asset that is:
Cash
A contractual right to receive cash or another financial asset from another entity.
A contractual right to exchange financial assets or liabilities with another entity under conditions that are potentially favourable
An equity instrument of another entity
Trade Receivables
Investments in equity shares ( < 20% equity shares)
Options
Example of Financial Assets:
A
financial instrument
is any contract that gives rise to a
financial asset
of one entity and
financial liability
of equity instrument of another entity
Accounting Standards to deal with financial instruments:
IAS 32 Financial Instruments: Presentation
IFRS 7 Financial Instruments: Disclosures
IFRS 9 Financial instruments: Measurements